Soundscape Enterprises manufactures Sonoblast, a device that produces a high-

pitched reminder to telemarketers that they have once again disturbed you just when you were

sitting down to dinner. The production function for Sonoblast is given by the formula Q = 2KL where Q is in units of output per period, K is in machine-weeks per period, and

L is in labour-weeks per period. The machine rental rate r is $512 per machine-week and the wage rate w is $128 per labour-week. In the short run, K is fixed at 4 machine-weeks per period.

If K is increased to a fixed 16 units, at what level of Q is ATC minimized, and what are the values of ATC and of MC at this level of output?